Real Estate Industry Award pay rates, allowances, and overtime
The Real Estate Industry Award 2020 sets out the employment conditions for workers in the real estate field, ensuring they’re treated fairly and compensated properly. This award applies to a wide range of roles, providing a framework for equitable treatment in the industry.
This overview details the major components of the Real Estate Industry Award, such as the minimum pay rates, guidelines for paying wages, various types of allowances, superannuation contributions, rules for overtime, additional pay for specific hours worked, leave policies, and public holiday entitlements. A comprehensive understanding of these factors is essential for ensuring adherence to the award and promoting a just workplace.
Note: The information provided in this article is accurate as of 18/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Real Estate Industry Award 2020 for the most current information.
Real Estate Industry Award minimum pay rates
Understanding the minimum pay rates guarantees that workers in the real estate industry receive fair compensation. The table below presents a detailed summary of the minimum rates as defined by the Real Estate Industry Award, encompassing various job positions.
Note, casual employees receive a 25% loading on top of the standard hourly rate for every hour worked.
Category
Description
Rates/details
Example
Adult employees
Employees aged 21
and over
Real Estate Employee Level 1 (Associate Level)—first 12 months of employment at this level: $932.20/week ($30.66/hour)
Real Estate Employee Level 1 (Associate Level)—after first 12 months of employment at this level: $981.40/week ($32.29/hour)
Real Estate Employee Level 2 (Representative Level): $1032.30/week ($33.96/hour)
Real Estate Employee Level 3 (Supervisory Level): $1135.50/week ($37.35/hour)
Real Estate Employee Level 4 (In-Charge Level): $1187.30/week ($39.05/hour)
For example, a 30-year-old real estate sales representative will receive $1032.30 per week or $33.96 per hour.
Junior employees
Employees aged under 21
Under 19: 60% of adult employee rate
19 years: 70% of adult employee rate
20 years: 80% of adult employee rate
21 years: 100% of adult employee rate
For example, a 20-year-old real estate associate in their first 12 months of employment would receive 80% of the adult rate for this level, which is $745.76 per week or $24.53 per hour (80% of $932.20 per week or $30.66 per hour).
Supported wage system
Employees with disabilities who qualify for a supported wage
The minimum pay is based on their assessed work capacity and the applicable award rates
For instance, a worker with a disability evaluated at 60% capacity will earn 60% of the standard minimum rate for their role.
National training wage
Employees enrolled in
a traineeship program
Wages vary based on the training package, qualification level, and the trainee's year of training
A first-year trainee pursuing a Certificate III will receive wages according to the specified rates for their training package and year.
Real Estate Award payment of wages
The Real Estate Industry Award provides detailed guidelines on wage payments, including payslip requirements and termination payments:
- Payslips: According to the Fair Work Regulations 2009, pay records and payslips must clearly list any allowances paid to employees.
- Frequency of payment: Employers must pay wages and allowances to employees on a weekly, fortnightly, or monthly basis, unless otherwise specified. Employers typically pay casual employees at the end of the usual pay cycle, unless there’s an agreement to pay them at the end of each shift.
- Methods of payment: Employers can choose to pay wages by cash, cheque, or electronic funds transfer (EFT).
- Payment on termination of employment: Employers are required to pay terminated employees within seven days of the termination date. This includes all wages for completed or partial pay periods up to the termination day and any other amounts due under the award and the National Employment Standards (NES). This requirement is subject to any orders by the Commission and permitted deductions.
Commission, bonus, and incentive payments
The Real Estate Award also outlines the rules regarding commission, bonus, and incentive payments:
- Entitlement and payment timing: Employees who are eligible for commission, bonus, or incentive payments under a written agreement must receive these payments within 14 days of them becoming due. The payments are considered due only after the employer has received cleared funds from the client for the related transactions.
- Written agreements: The specifics of any commission, bonus, or incentive payment arrangement must be documented in a written agreement between the employer and the employee. Any changes to these arrangements must also be documented in writing.
- Entitlements post-employment: After employment ends, employees are still entitled to commissions, bonuses, or incentive payments for transactions completed prior to their termination, provided the employer receives payment from the client.
- Dispute resolution: Any disputes over commission payments will be handled according to the dispute resolution procedures outlined in the award.
- Special conditions for commission-only employment:
- Employees engaged on a commission-only basis must meet specific criteria, such as being at least 21 years old and having a minimum of 12 consecutive months of relevant experience within the last 3 years.
- Commission-only employees are guaranteed a minimum commission rate of 31.5% of the employer’s gross commission and must achieve an annual income of at least 125% of the award’s minimum wage to maintain their commission-only status.
- Commission-only arrangements must cease if the employee’s annual income falls below the required threshold, and they may only resume once they meet the criteria again.
Real Estate Industry Award allowances
The Real Estate Industry Award includes various allowances to ensure employees receive appropriate compensation for additional responsibilities, expenses, and conditions associated with their roles. These allowances cover a range of scenarios, from travel and accommodation expenses to specific duties and certifications. Understanding the different allowances and their application is important for both employers and employees to maintain compliance and ensure fair treatment within the industry.
Allowance type
Description
Amount/details
Travelling expenses and travelling time
For employees traveling on business
Reimbursement of all reasonable expenses incurred.
Reasonable compensation for excess travel time, mutually agreed upon.
Motor vehicle allowance
Applies when employees use their own motor vehicle for work purposes
Varies by engine capacity and vehicle age. See Schedule C in the award for detailed rates.
Alternatively, $0.98 per kilometre up to 400 km per week.
Part-time and casual employees' motor vehicle allowance
Applies to part-time and casual employees who use their motor vehicle for work purposes
Calculated on the basis of one-fifth of the appropriate standing charge or lump sum rate for each day worked
Motor cycle allowance
Applies when employees use their own motor scooter or motorcycle for work purposes
$0.33 per kilometre up to 400 km per week
Employer’s motor vehicles
Applies when employees use a vehicle provided by the employer for work-related duties
Employer covers all related expenses
Mobile phone allowance
Applies when employees use their own mobile phone for work purposes
Reimbursement of at least 50% of the cost of the employee’s mobile phone plan, up to a maximum plan of $100/month
Uniforms
Applies when employers require employees to wear a uniform
Employer pays for or provides the uniform
Employee responsible for care and cleaning
Adjustment of expense-related allowances
Ensures allowances adjust based on movements in applicable index figures published by the Australian Bureau of Statistics
Allowances adjusted based on the Eight Capitals Consumer Price Index
General expenses
Applies when employees incur any work-related expenses at the request of the employer
Reimbursement of all work-related expenses incurred
Excess travelling
Ensures allowances adjust based on movements in applicable index figures published by the Australian Bureau of Statistics
Allowances adjusted based on the Eight Capitals Consumer Price Index
Real Estate Award superannuation
The Real Estate Industry Award outlines superannuation rights and obligations for both employers and employees, supplementing the provisions of the National Employment Standards (NES) and various superannuation legislation:
- Superannuation contributions: Employers must make superannuation contributions to a superannuation fund for their employees to avoid incurring the superannuation guarantee charge. As of July 2024, the superannuation guarantee rate is 11.5% of an employee’s ordinary time earnings.
- Employee eligibility: Most employees qualify for superannuation contributions if they’re aged 18 or over and earn more than $450 in a calendar month. This includes full-time, part-time, and casual employees.
- Superannuation fund: Employees can choose their superannuation fund. If a new employee doesn’t choose a fund, employers must check with the Australian Taxation Office (ATO) to see if the employee has a stapled superannuation fund. If a stapled fund exists, the employer must contribute to that fund. If no stapled fund exists, employers can contribute to one of the following approved superannuation funds, provided they can accept new beneficiaries:
- REI Super
- CareSuper
- Tasplan
- Any superannuation fund used by the employer before 12 September 2008, provided it’s an eligible choice fund offering a MySuper product or an exempt public sector superannuation scheme
- A superannuation fund or scheme that the employee is a defined benefit member of
- Paid leave and absence: Employers must continue making superannuation contributions during periods of paid leave. For work-related injury or illness, contributions must be made for up to 52 weeks if the employee receives workers' compensation or regular payments from the employer and remains employed.
- Voluntary contributions: Employees have the option to make extra voluntary contributions to their superannuation fund. They may authorise their employer in writing to deduct a specified amount from their post-tax wages and deposit it into their superannuation fund. Employees can modify these contributions with three months' written notice. Employers must then ensure they make these payments within 28 days after the end of the month when the deductions occurred.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Real Estate Industry Award overtime and penalty rates
The Real Estate Industry Award ensures employees receive fair compensation for working beyond their standard hours. The award doesn’t specify penalty rates for weekend or after-hours work as it focuses on standard overtime provisions and compensation.
Overtime payment conditions
- Specific direction: Employees receive overtime pay only if they work extra hours at the specific direction of the employer.
- Calculation: Overtime on one day is calculated independently from overtime on other days.
- Self-initiated work: Employees don’t receive overtime pay for hours worked at their own initiative without express instruction from the employer.
Day
Full-time and part-time overtime rates
Casual overtime rates
Hours other than on a rostered day/half day off—all day
100% of minimum hourly rate
125% of minimum hourly rate
Hours on a rostered day/half day off—first 2 hours
150% of minimum hourly rate
-
Hours on a rostered day/half day off—after 2 hours
200% of minimum hourly rate
-
Time off instead of payment for overtime
- Employees and employers can agree in writing to take time off instead of receiving overtime pay.
- Any overtime worked that is to be taken as time off must be the subject of a separate agreement.
- The period of time off is equivalent to the number of overtime hours worked.
- Time off must be taken within six months of working the overtime. If not taken, it must be paid out at the overtime rate applicable when the overtime was worked.
Standby and call-out
- For property management or strata and community title management roles, if an employee is required to be on standby or called out outside ordinary hours, the employer and employee must agree on compensation in writing.
- An employee’s salary above the minimum wage may include compensation for standby and call-out duties if specified in the agreement.
Real Estate Award leave and public holidays
The Real Estate Industry Award details the specifics of annual leave entitlements, covering accrual rates, taking leave, and provisions for various circumstances. These include leave during business shutdowns, obtaining leave in advance, cashing out leave, and managing excessive leave balances. Additionally, the award outlines the entitlements and requirements for public holidays, ensuring employees receive appropriate compensation and benefits during these periods.
Annual leave
Clause
Details
Example
Annual leave entitlement
Full-time employees accumulate four weeks of annual leave per year. Part-time employees earn leave based on their hours worked.
A full-time employee working 38 hours per week earns four weeks of leave annually. A part-time employee working 20 hours per week earns four weeks of leave at 20 hours per week.
Payment and loading during annual leave
Employees are paid their usual wages during annual leave, including a 17.5% leave loading.
If an employee earns $1,350 per week, they receive $1,350 plus 17.5% loading for each week of leave taken.
For example, Scott takes two weeks of leave with a weekly wage of $1,500. He gets an additional 17.5% loading: $1,500 x 2 weeks x 17.5% = $525.
Shutdown period
Employers can temporarily close operations and require employees to use their paid annual leave, provided they give 28 days' notice in writing.
A company announces a shutdown for the first week of August on 1st July. Employees must take paid leave or, if they lack sufficient leave, can agree to unpaid leave.
Leave in advance
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued. The agreement must specify the amount of leave, the start date, and be signed by both parties.
Jeremy and his employer agree he will take one week of annual leave in advance, starting on 1st October, and they sign an agreement detailing this arrangement.
Cashing out annual leave
Employees can cash out annual leave with a written agreement, retaining at least four weeks of accrued leave.
A maximum of two weeks can be cashed out in a 12-month period.
The agreement must detail the amount cashed out and payment info.
Rohan has six weeks of accrued leave and agrees to cash out two weeks. Rohan and his employer sign an agreement specifying the payment details, leaving Rohan with a balance of four weeks.
Excessive leave accruals
Accruals over eight weeks are considered excessive. Employers and employees should negotiate to reduce excessive leave.
If no agreement is reached, employers can direct leave. Employees can also request leave if excessive accruals.
Does not bear an economic risk
Other types of leave
The following leave provisions align with the NES, ensuring employees have the necessary support in various circumstances:
- Personal/carer’s leave: Full-time employees have a right to 10 days of paid personal/carer's leave each year. They can use this leave for personal illness or injury or to care for an immediate family member who is ill. Part-time employees accrue this leave on a pro-rata basis, based on the number of hours they work.
- Compassionate leave: Employees get two days of paid compassionate leave for each occasion when a member of their immediate family or household passes away or suffers a life-threatening illness or injury.
- Parental leave: Eligible employees can take up to 12 months of unpaid parental leave for the birth or adoption of a child. They can also request an additional 12 months of leave, which the employer can only refuse on reasonable business grounds.
- Community service leave: Employees can take leave for eligible community service activities, such as emergency service duties or jury duty. This leave is unpaid, except for jury duty, where employees may receive make-up pay.
- Family and domestic violence leave: Employees have a right to take 10 days of paid leave per year for family and domestic violence. They can use this leave for various purposes, including seeking medical assistance, obtaining services from support organisations, or attending court hearings.
Public holidays
Public holidays provide employees with a break from their regular work duties and form an important part of the benefits outlined in the Real Estate Award. Here’s an overview of how public holidays are managed under this award and the NES:
Clause
Details
General entitlement
Employees have the right to a paid day off on a public holiday as per the NES, excluding casual employees.
Reasonable refusal
Employers can request an employee to work on a public holiday if the request is reasonable. Employees can refuse if the request is unreasonable or their refusal is reasonable.
Substituting a public holiday
Employers and employees can agree to substitute another day for a public holiday.
Substituting a part-day public holiday
Employers and employees can agree to substitute another part-day for a part-day that would otherwise be a public holiday.
Minimum engagement and pay rate for work on public holidays
Employees required to work on a public holiday must be engaged for at least three hours and compensated at double the minimum hourly rate.
Hours before or after a part-day public holiday
Hours worked immediately before or after a part-day public holiday that are part of one continuous shift count towards the minimum payment period.
Recognised public holidays
Public holidays under the NES include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day, among others.
Additional public holidays
States and territories can declare extra public holidays which employers must observe.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Real Estate Industry Award payment management tips
Navigating payments and entitlements in the Real Estate Industry Award can be complex. Here are effective strategies to ensure compliance with requirements such as minimum wage, wage payments, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay up-to-date on wage changes: Regularly review updates to minimum wages, overtime, and penalty rates, as these can change each year under the award.
- Invest in payroll automation: Utilise efficient payroll software to automate wage calculations, including overtime, penalty rates, and superannuation contributions. This minimises errors and ensures timely payments.
- Maintain accurate records: Document all employee payments comprehensively, including wages, overtime, penalty rates, and leave entitlements. Accurate records help ensure compliance and provide a basis for resolving disputes.
- Conduct regular payroll reviews: Conduct periodic reviews of your payroll system to ensure it adheres to the latest award requirements and adjust as necessary.
- Document agreements thoroughly: Record all agreements regarding annual leave (such as leave in advance or leave cashed out) and overtime (including time off in lieu) with signatures from both parties to ensure clarity and compliance.
- Provide comprehensive training: Provide ongoing training for your HR and payroll staff on the specifics of the Real Estate Industry Award to ensure they manage payments and entitlements correctly.
- Consult with specialists: Consult with industrial relations specialists or legal professionals regularly to stay informed about changes to the award or employment laws.
- Efficient leave management: Track employee leave balances carefully, including annual leave, personal/carer's leave, and compassionate leave. Keep employees informed about their leave balances and entitlements.
- Ensure accurate superannuation contributions: Accurately calculate superannuation contributions based on ordinary time earnings (OTE) and ensure timely payments. Payroll software can help automate these processes.
- Foster open communication: Communicate clearly with employees about their pay, entitlements, and any changes to award conditions to build trust and prevent misunderstandings.
- Keep up with NES standards: Regularly update your knowledge of the National Employment Standards, as they provide the foundational guidelines that work alongside the Real Estate Industry Award.
Real Estate Award nuances
Grasping the intricacies of the Real Estate Award is key to staying compliant and avoiding potential issues. Here are some key aspects that often catch employers by surprise:
- No penalty rates for weekend or after hours work: While the award observes overtime, it doesn’t provide penalty rates for work performed on weekends or after regular hours.
Impact: Employers may mistakenly assume that weekend and after-hours work requires additional compensation, leading to overpayments or underpayments. Understanding this aspect helps ensure accurate wage calculations and compliance with the award's provisions.
- Special rules for commission, bonus, and incentive payments: The award includes specific guidelines for commission, bonus, and incentive payments, which must be detailed in a written agreement between the employer and the employee
Impact: Failing to follow these guidelines can result in disputes and non-compliance. Employers need to document all commission, bonus, and incentive payment agreements thoroughly to ensure clarity and adherence to the award.
- Minimum engagement for public holidays: Employees who work on a public holiday must be engaged for at least three hours, and any hours worked immediately before or after a part-day public holiday that form part of one continuous shift count towards the minimum payment period
Impact: Misunderstanding these requirements can lead to incorrect payments for public holiday work. Employers must ensure they meet the minimum engagement period and correctly calculate the payment for continuous shifts involving part-day public holidays.
Simplifying Real Estate Industry Award pay, overtime and superannuation compliance with Rippling
Navigating the complexities of payroll, overtime, superannuation, and annual leave in accordance with modern awards can be daunting. Rippling's all-in-one platform streamlines these processes, ensuring accuracy, regulatory compliance, and convenience. Key features include:
- Accurate payroll calculations: Automatically calculate award pay rates, including penalty rates, allowances and overtime.
- Overtime management: Track and manage overtime hours according to award requirements.
- Superannuation compliance: Ensure correct calculation, reporting and payment of superannuation contributions.
- Integrated payroll systems: Seamlessly integrate with existing payroll systems.
- Real-time updates: Receive updates on changes to pay rates and superannuation rules for various awards.
With Rippling, you can do more than just meet award compliance requirements; you can exceed them. Take the tour or contact us today!
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
